Risk, Time Pressure, and Selection Effects

Kocher, Martin G.ORCID: https://orcid.org/0000-0002-6792-1192; Schindler, David; Trautmann, Stefan T. and Xu, Yilong (March 2018) Risk, Time Pressure, and Selection Effects. Former Series > Working Paper Series > IHS Economics Series 339, 37 p.

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Abstract

Time pressure is a central aspect of economic decision making nowadays. It is therefore natural to ask how time pressure affects decisions, and how to detect individual heterogeneity in the ability to successfully cope with time pressure. In the context of risky decisions, we ask whether a person’s performance under time pressure can be predicted by measurable behavior and traits, and whether such measurement itself may be affected by selection issues. We find that the ability to cope with time pressure varies significantly across decision makers, leading to selected subgroups that differ in terms of their observed behaviors and personal traits. Moreover, measures of cognitive ability and intellectual efficiency jointly predict individuals’ decision quality and ability to keep their decision strategy under time pressure.

Item Type:	IHS Series
Keywords:	risk, cognitive ability, selection, time pressure
Classification Codes (e.g. JEL):	C91, D81
Research Units:	Former Research Units (until 2020) > Insight Austria
Date Deposited:	21 Mar 2018 10:43
Last Modified:	25 Sep 2023 06:01
ISSN:	1605-7996
URI:	https://irihs.ihs.ac.at/id/eprint/4603

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